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Central Bank of Chile

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in a two-year horizon. Decisions on the monetary policy rate (MPR), the reference interest rate for the economy, usually take place on a monthly basis in the monetary policy meetings, although extraordinary meetings can be called. If inflation expectations are diverging from the 3% target or if there are events since the previous meeting with an anticipated effect in the price level, the CBoC might change the MPR. The monetary policy is carried out through the daily interbank interest rate. Inflation has followed a relatively stable trajectory since the inception of the targeting regime, remaining under 10% ever since; yearly inflation only surpassed the tolerability threshold of 4% in 2007 and 2008, with respective readings of 4.4% and 8.7% in historical terms.
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are to safeguard "the stability of the currency and the normal functioning of internal and external payments". Therefore, the CBoC needs to control inflation to foster a stable currency, while the payment system's normality requires functional financial intermediation, the provision of payment services and adequate risk allocation. To meet these objectives, the CBoC is enabled to use monetary and foreign exchange policy instruments, along with some discretion on financial and capital markets regulation.
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minimum between the chosen member's remaining term and five years. At least three members need to be present for the board to operate and measures are adopted with the support of the majority of present members. The Minister of Finance also participates in board meetings with the right to speak and, unless there is full consensus among board members, can suspend board resolutions for 15 days.
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The CBoC is Chile's monetary authority and its monetary policy is guided by an inflation targeting regime, which is fully in place since 1999. Specifically, the CBoC pursues an inflation target of 3%, with a tolerance range of 1% (above or below), with the objective of anchoring market expectations
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The CBoC is granted autonomous status by Chile's National Constitution, in order to secure independence from national authorities, providing credibility and stability beyond the political cycle. According to the Basic Constitutional Act of the Central Bank of Chile (Law 18,840), its main objectives
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of Princeton University and based the nascent central bank's structure in one of the mission proposals. In August 1925, the Central Bank of Chile (CBoC) was created through Decree Law 486, which also established the bank's monopoly for issuing bank notes under a gold standard regime. A degree of
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The CBoC is governed by a Board composed of five members appointed by the president, but ratified by the senate. Each term is ten years long and members are chosen in a staggered way every two years. The president appoints the Governor of the Board (and the bank) from existing members, for the
510: 260:, although the bank reserves the right to intervene in the foreign exchange markets. Although unusual, the CBoC has used announced interventions on four occasions since 1999, when the economy transitioned to a floating exchange rate scheme, all of which were 558: 197:
Starting in the mid-19th century, private banks started to thrive in Chile, spurring growing concerns over the control of payment methods and persistent inflation. To this end, the government hired a mission led by economics professor
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Inflation, however, did not recede. Moreover, it was further heightened by a weak institutional framework. Inflation would only be controlled after the introduction of autonomy of constitutional rank in 1989.
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independence to avoid capture by the public or private sectors was implicit in its ten-member board structure.
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as an autonomous institution of constitutional rank. Its monetary policy is currently guided by an
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Corbo, Vittorio, and Leonardo Hernández. "Ochenta años de historia del Banco Central de Chile."
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Central Bank of Chile: Monetary Policy in an Inflation Targeting Framework.
965: 869: 677: 533: 629: 2299: 120: 989: 749: 437: 1366:"Nómina de autoridades del Banco Central de Chile desde su fundación" 1669: 1262: 1148: 181:. It was established in 1925 and is incorporated into the current 178: 105: 1638: 1244:
Law 18,840, Basic Constitutional Act of the Central Bank of Chile
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International Centre for Settlement of Investment Disputes
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International Bank for Reconstruction and Development
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Working Paper No. 345, Central Bank of Chile (2005).
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March 2022. 2262: 2178: 1992: 1988: 1882: 1695: 1686: 1661: 1647: 1639: 1430: 1416: 1408: 1263:Central Bank of Chile, Statistics Database 44:Official logo of the Central Bank of Chile 29: 1585:Multilateral Investment Guarantee Agency 1167: 1165: 1156:Katalog der Deutschen Nationalbibliothek 271: 256:The foreign exchange policy is led by a 222: 214: 1139: 1623:Central banks and currencies of Europe 1608:Central banks and currencies of Africa 1458:Basel Committee on Banking Supervision 1220: 1218: 1216: 1214: 1212: 1210: 1575:International Development Association 7: 1915:Fjords, channels, sounds and straits 1287:Central Bank of Chile, Press Release 1275:Central Bank of Chile, Press Release 1234:Central Bank of Chile, January 2007. 1453:Bank for International Settlements 25: 1580:International Finance Corporation 1867: 1092: 1060: 1036: 1012: 988: 964: 940: 916: 892: 868: 844: 820: 796: 772: 748: 724: 700: 676: 652: 628: 604: 580: 556: 532: 508: 484: 460: 436: 412: 388: 364: 340: 316: 292: 60: 50: 38: 1484:Contractionary monetary policy 1277:, April 10, 2008 (in Spanish). 805:Hernán Felipe Errázuriz Correa 1: 2488:1925 establishments in Chile 2097:Comptroller General of Chile 1489:Expansionary monetary policy 1123:Ministry of Finance of Chile 397:Guillermo Subercaseaux Pérez 373:Armando Jaramillo Valderrama 2322:Water supply and sanitation 1555:International Monetary Fund 27:Monetary Authority of Chile 2529: 733:Sergio de la Cuadra Fabres 2493:Banks established in 1925 2407: 2265: 2181: 1995: 1991: 1885: 1865: 1463:Financial Stability Board 1113:Economic history of Chile 102:Central bank of 49: 37: 1403:(in English and Spanish) 1364:Banco Central de Chile. 829:Francisco Ibáñez Barceló 781:Carlos Cáceres Contreras 613:Alfonso Inostroza Cuevas 301:Ismael Tocornal Tocornal 997:José de Gregorio Rebeco 517:Eduardo Figueroa Geisse 445:Enrique Oyarzún Mondaca 229:José de Gregorio Rebeco 227:Central Bank President 211:Institutional framework 877:Manuel Concha Martínez 493:Arturo Maschke Tornero 469:Manuel Trucco Franzani 258:floating exchange rate 236: 220: 171:Banco Central de Chile 170: 33:Banco Central de Chile 18:Banco Central de Chile 2464:33.44111°S 70.65278°W 2123:Investigations Police 1786:Presidential Republic 1762:Conservative Republic 1754:Republic Organization 1603:List of central banks 1535:Sovereign wealth fund 1530:Open market operation 1253:, Title I, Section 3. 1147:Weidner, Jan (2017). 1128:List of central banks 925:Roberto Zahler Mayanz 349:Francisco Garcés Gana 226: 218: 163:Central Bank of Chile 31:Central Bank of Chile 2469:-33.44111; -70.65278 2092:Constitutional Court 1970:World Heritage Sites 1802:Democracy Transition 901:Andrés Bianchi Larre 853:Enrique Seguel Morel 661:Eduardo Cano Quijada 541:Luis Mackenna Shiell 421:Marcial Mora Miranda 183:Chilean Constitution 136:Interest rate target 2513:1925 in Chilean law 2508:Government of Chile 2460: /  2160:Ministry of Defence 1479:Capital requirement 973:Vittorio Corbo Lioi 709:Alvaro Bardón Muñoz 685:Pablo Baraona Urzúa 645:September 10, 1973 565:Sergio Molina Silva 231:presenting the new 187:inflation targeting 34: 2234:Telecommunications 1289:, January 3, 2011. 1249:2013-01-20 at the 1230:2013-12-21 at the 949:Carlos Massad Abud 906:December 10, 1989 786:September 3, 1982 765:September 2, 1982 589:Carlos Massad Abud 309:† October 6, 1929 237: 221: 2443: 2442: 2403: 2402: 2252: 2251: 2168: 2167: 2131: 2130: 2020:Political parties 2010:Foreign relations 2000:National Congress 1978: 1977: 1863: 1862: 1859: 1858: 1778:Parliamentary Era 1722:Spanish Discovery 1636: 1635: 1083: 1082: 930:December 3, 1991 909:December 2, 1991 885:December 9, 1989 637:Carlos Matus Romo 325:Emiliano Figueroa 268:List of governors 159: 158: 16:(Redirected from 2520: 2475: 2474: 2472: 2471: 2470: 2465: 2461: 2458: 2457: 2456: 2453: 2423: 2416: 2263: 2219: 2179: 1993: 1989: 1883: 1871: 1806: 1798: 1790: 1782: 1774: 1770:Liberal Republic 1766: 1758: 1750: 1742: 1734: 1730:Spanish Conquest 1726: 1718: 1696: 1687: 1663: 1656: 1649: 1640: 1560:World Bank Group 1432: 1425: 1418: 1409: 1404: 1401: 1400: 1398:Official website 1383: 1382: 1380: 1379: 1370: 1361: 1290: 1284: 1278: 1272: 1266: 1260: 1254: 1241: 1235: 1222: 1205: 1204: 1202: 1201: 1192:. Archived from 1186: 1175: 1169: 1160: 1159: 1153: 1144: 1118:Economy of Chile 1102: 1097: 1096: 1095: 1064: 1040: 1016: 992: 968: 944: 920: 896: 872: 848: 824: 800: 776: 757:Miguel Kast Rist 752: 728: 704: 680: 656: 632: 608: 584: 560: 536: 512: 488: 464: 440: 416: 392: 368: 344: 320: 296: 272: 155: 152: 150: 65:Agustinas 1180, 54: 42: 35: 21: 2528: 2527: 2523: 2522: 2521: 2519: 2518: 2517: 2478: 2477: 2468: 2466: 2462: 2459: 2454: 2451: 2449: 2447: 2446: 2444: 2439: 2426: 2419: 2412: 2399: 2385:Public holidays 2350:Beauty pageants 2331: 2248: 2217: 2164: 2127: 2101: 2082:Law enforcement 2034: 1974: 1935:Natural regions 1872: 1855: 1809: 1804: 1796: 1794:Pinochet Regime 1788: 1780: 1772: 1764: 1756: 1748: 1740: 1732: 1724: 1708: 1676: 1667: 1637: 1632: 1591: 1546: 1539: 1510:Capital control 1498: 1467: 1441: 1436: 1402: 1396: 1395: 1392: 1387: 1386: 1377: 1375: 1373:www.bcentral.cl 1368: 1363: 1362: 1293: 1285: 1281: 1273: 1269: 1261: 1257: 1251:Wayback Machine 1242: 1238: 1232:Wayback 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Index

Banco Central de Chile
Official logo of the Central Bank of Chile
Front view of the Central Bank of Chile building
Santiago, Chile
state ownership
Rosanna Costa
Chile
Chilean peso
ISO 4217
www.bcentral.cl
Spanish
central bank
Chile
Chilean Constitution
inflation targeting
Edwin Kemmerer


José de Gregorio Rebeco
$ 5,000
floating exchange rate
sterilized

Ismael Tocornal Tocornal

Emiliano Figueroa
centro
Francisco Garcés Gana

Armando Jaramillo Valderrama

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